Not All RV Loans Are Equal
Not all financing is good financing, and leaving your customers to hope for the best by working directly with a lender is a recipe for dissatisfaction.
Ensuring your customers have access to the best financing for their RV purchase is as important as having the actual units in stock. We can get more loan applications approved and can facilitate the process from your lot to a new owner’s driveway.
Most customers don’t come to the RV dealership with a suitcase full of cash. In fact, it’s more advantageous not to liquidate any assets to purchase your new RV. Current rates for an RV loan can be as low as 4.74% with good credit and depending on terms. Also, before you purchase your RV, check with your tax professional, because interest on an RV can be deducted from your taxes.
The first step prospective RV buyers should take is to fill out our online application. From this we determine your credit score, apply your down payment, determine the age and condition of the unit you intend to buy, find you the most advantageous rate, and come up with a monthly payment that is within your budget. These approvals can come as quickly as you need them to, either over the course of a week, or that afternoon at a boat and RV show.
An internal financing department has certain advantages. However, the professional staff you’ll need to hire, the space for their offices, recruiting and turnover, and other overhead expenses generally make an internal finance department less efficient and more expensive than a firm like Finance Solution.
The difference between one outsourced provider and another comes down to a few basic metrics: how many loans are they able to close, what sort of rates are they able to secure for your customers, and can service be scaled up and down depending on the time of year? All the answers to these questions need to be weighed against each other. It won’t take long to discover why Finance Solution stands alone.
Interest rates for RV loans typically start around 5%, though some lenders may offer rates as low as 4.29%. These interest rates can go as high as 11%. However, the interest rate you get for your RV loan depends on several factors, including RV loan terms and your credit score. These factors are discussed in the following sections.
A superior financing solution is a key way to boost the number of units you’re selling.
When you decide to purchase an RV, you need to consider your loan’s terms and rates. It’s best to determine whether you want a long-term or short-term loan. Why? RVs are considered luxury purchases, so they often have higher prices than cars and trucks. Because of this, RV loans often have higher interest rates than truck or car loans. The length of the loan you choose plus its interest rate determines how long it takes you to pay off the loan. You often have two options for RV loans:
Finance Solution helps you navigate these different loan options and choose the one that best fits your financial situation.
How hard is it to qualify for an RV loan? It can be difficult or easy, depending on the following factors:
Finance Solution helps you examine these factors and apply for RV loans that you qualify for. We maintain relationships with lenders who have experience with RV loans. We also ensure that your loan gets quick approval so you can start enjoying your purchase.
RV loans help you pay off a major investment. That’s why it’s best to buy your RV from a dealership rather than an individual online. We don’t provide loans for transactions conducted between individuals on Facebook Marketplace and Craigslist. These types of transactions come with elevated fraud and financial risks. How? When a seller advertises an RV on Craigslist or Facebook Marketplace, there’s no proof that their vehicle really exists. So they could put up a listing promising an RV without actually having one to sell.
When someone decides to buy it, the seller takes their money without ever providing the vehicle because they didn’t have one in the first place. If we provide a loan for such a transaction, we and the lenders we work with could face penalties and other consequences. We prefer to work with dealerships because they have RVs on their lots that we know we can finance safely.
Dealerships that outsource their F&I through Finance Solution regularly see a 20% bump in approvals and, by extension, units moved off the lot.